Quick Edit: Pickett Portfolio

Ever since Thomas Piketty identified worsening inequality as a problem, as long as the rate of return on capital exceeds the rate of income growth, as has been the post-industrial trend, rough proxies for comparison have been drafted. has been prepared. According to a study released by fund manager Janus Henderson, the world’s 1,200 largest publicly listed companies will issue dividends totaling $327 billion in the first quarter of 2023, up 12% year-on-year and a record figure. Global growth in output, measured by adding up all income, is barely a third of that rate, and may slow further as economic impulses weaken. The contrast is not exact, but the rate variance is sufficient to illustrate how well asset owners have fared as a class compared to a broad base of income earners, including wage-earners. Are included. The hypothesis that Covid policies largely enriched the wealthy cannot be easily tested, but we have several indications of this. As we have seen in the past, counterproductive responses to statist action can lead to economic suffocation, but there should be no way out. Personally, a rational response would be: If you can’t beat ’em, join ’em. Pile into dividend paying stocks.

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Updated: May 24, 2023, 10:43 PM IST